Correlation

Category: Quant Insight

Correlations moved higher over the week, we think this is likely indicating strength of macro events such as increased rates and increased pressure on inflation.

The correlation figure measures how each asset return moves in relationship to the broader basket of asset returns listed on the X axis. When correlations are high or rising, it may indicate that economic movements and sentiment are driving the majority of returns, which could potentially make security selection challenging.

See the data